From April 2013 most employers and pension providers will be ‘legally required’ to report payroll information using Real Time Information (RTI), with nearly all employers doing so before October 2013. Penalties will be levied on those employers who fail to comply with the RTI regime.
AAT has responded to the HMRC consultation document on the penalty structure and our response accepted the need for penalties in order to ensure that businesses comply with the RTI requirements.
To summarise, the AAT’s response supported a penalty regime:
- that is effective whereby employers are promptly notified when they have failed to comply
- where the level of the penalty is broadly proportionate and acknowledges where the employer has previously compliant behaviour
- that is fair and equitable and meets the stated desire of correcting non-compliant behaviour
- that works operationally - for example, we recommended that employers should submit nil returns which is easier than appealing against a penalty.